Amazon is to acquire US online pharmacy PillPack in a deal likely to rock the healthcare sector.
PillPack specialises in supplying people who take multiple daily subscriptions, delivers medications in pre-sorted dose packaging, co-ordinates refills and renewals, and ensures shipments are sent on time.
PillPack was founded in 2013 and last year said it expected to generate revenues of $100m. The deal with Amazon sent the shares of established health specialists plunging.
Walgreens Boots Alliance, CVS Health and Rite Aid lost $11bn of their market value following news of Amazon’s long-anticipated push into healthcare.
Amazon Worldwide Consumer chief executive Jeff Wilke said: “PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology.
“PillPack is meaningfully improving its customers’ lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier. We’re excited to see what we can do together on behalf of customers over time.”
PillPack co-founder and chief executive TJ Parker said: “Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the US who can benefit from a better pharmacy experience.”
Completion of the deal transaction is subject to regulatory approval and is expected to complete in the second half of this year.